What factors does the Romer model say that yt depends on?

Expert Solution

Rahul Sunny answered 1 year ago

The Romer model can be described by 4 equations: Yt = AtLyt ∆At+1 = zAtLat Lyt...

The Romer model can be described by 4 equations: Yt = AtLyt ∆At+1 = zAtLat Lyt + Lat = L Lat = IL Y is ﬁnal output, A is ideas/knowledge, Ly is employment in production of ﬁnal output, La is the number of researchers and L is the population. a) What is the driver of long-run growth in this model? b) Using the equations in the question, show that the growth rate of output per capita can be written as...

When five-factor model theorists say that factors are generallyindependent, what does this mean? When they...

When five-factor model theorists say that factors are generally independent, what does this mean? When they say Factors are normally distributed, what do they mean ?. You can answer each of these using a sentence or two.

How does the Romer model of economic growth exploit the concept of nonrivalty? {5 Marks}

What are the factors contributing (depends upon ) to the risk of injury

5. The Romer Model predicts that an increase in the level of capital in the economy...

5. The Romer Model predicts that an increase in the level of capital in the economy (K) will a. have an ambiguous effect on the growth rate of ideas. b.increase the growth rate of ideas. c. decrease the growth rate of ideas. d. have no effect on the growth rate of ideas. 6. Which of the following statements about unemployment is TRUE? a. A more generous unemployment insurance program would likely increase the natural rate of unemployment since there will...

which of the following elements of Solow-Swan model did the Romer model endogenies? A. the growth...

which of the following elements of Solow-Swan model did the Romer model endogenies? A. the growth rate of labor force B. the growth rate fo labor efficiency C. The saving rate D. none of above is correct E. the depreciation rate

According to the balanced growth path implied by Solow-Romer model, what parameters are more susceptible to...

According to the balanced growth path implied by Solow-Romer model, what parameters are more susceptible to change in response to covid-19(please explain with the formula), in what way, and what would be the effect on the balanced growth path? What would the effect on the output gap and inflation be?

How long does it take to commute from home to work? It depends on several factors...

How long does it take to commute from home to work? It depends on several factors including the route, traffic, and time of departure. These times tend to be fairly close to symmetrical and mound-shaped. The data listed below (in minutes) is for a random sample of eight trips. Construct a 95% confidence interval for the population mean time of all such commutes. 26 39 34 44 20 36 31 39 A) What is the mean for this set of...

What does the neoclassical growth model say should be the long run impact of technological progress?

Suppose that two economies, Cicero and Berwyn, are described by the Romer model, they are identical...

Suppose that two economies, Cicero and Berwyn, are described by the Romer model, they are identical in every way except that the initial stock of ideas in Cicero is larger than the initial stock of ideas in Berwyn. If Berwyn increased the share of the labor force that is engaged in the production of new ideas, will Cicero and Berwyn still have a different growth rate of per capita GDP and levels of GDP?

Question